Hello,
we've been experiencing the following problem while using WP 2.0 (and 2.0.1) on one of our projects.
The domain we're working on is "www.1x100.net".
WP converts the domain name into "www.1×100.net", and, obviously, stops working (the theme is not loaded correctly).
We've fixed the error by simply commenting line 36 in file "wp-includes/functions-formatting.php":
$curl = preg_replace('/(\d+)x(\d+)/', "$1×$2", $curl);
Actually we do ignore if any other problems may occour by commenting this line of code.
The problem appear to be present even if the "1x100" is the name of a folder in the complete URL.
Hope that this helps you.
Thanks for your time and your wonderful product!
lorenzo dell'Uva